Featured Product

    CNB to Allow Dividend Distribution Based on Individual Assessment

    December 18, 2020

    CNB announced that it will set the limits for dividend payments conservatively for supervised institutions, in accordance with the ESRB Recommendation dated December 15, 2020. However, CNB will assess institutions' proposals for dividend payments individually, with focus on reviewing capital adequacy, risk profile, business model, and other significant factors. CNB will also discuss each case within the college of supervisors of the relevant financial group before making its statement. CNB assumes that financial institutions will come up with possible proposals only after they have the audited results for 2020 available.

    Based on the initial ESRB recommendation dated May 2020, financial institutions should refrain from dividend payments until the end of 2020. However, later, another ESRB recommendation dated December 15, 2020 extended the horizon of limiting the payment of dividends by financial institutions during the COVID-19 crisis until September 30, 2021. This revised recommendation gave financial institutions the option of making a partial dividend payment, provided that they proceed very prudently and that the payment does not exceed the conservative limits set by the supervisory authority. ESRB requires national financial market supervisors to set limits on the concerned institutions, considering the need to maintain their capital at a sufficient level to limit systemic risks and to enable each institution to contribute to the economic recovery. ESRB also expects the national supervisors to ensure that the overall level of dividend payments by supervised institutions is significantly lower than in the years before the COVID-19 crisis.

     

    Related Links

    Keywords: Europe, Czech Republic, Banking, Dividend Distribution, COVID-19, Regulatory Capital, Basel, Systemic Risk, CNB

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    HKMA Announces Launch of Data Repository on Sustainable Finance

    The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance (GSF) Cross-Agency Steering Group has launched the information and data repositories and outlined the progress made in advancing the development of green and sustainable finance in Hong Kong.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    NGFS Report on Integration of G-Cubed Model into NGFS Scenarios

    The Network for Greening the Financial System (NGFS) published a report that explores the feasibility of integrating the G-Cubed general equilibrium model into the NGFS suite of models.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8301